Bakrie?s power projects seek for PPA

PT Bakrie Power, a part of the Bakrie group of companies, is negotiating power purchase agreement (PPA) for its three power plants with the state-owned power firm PT PLN in a process it hopes to finalize early next year at the latest.

The company is trying to sell 1,515 MW of electricity to PLN, produced by three power plants; 2x660 MW Tanjung Jati,a plant in Cirebon, 3x65 MW Telaga Ngebel plant in East Java and 3x10 MW Sokario plant in Flores, NTT.

?We hope the PPA for the three plants could be signed by the end of the year, or early next year at the latest,? said Ali Herman Ibrahim, President Director of Bakrie Power, on the sidelines of the Indonesian Powers & Electricity Expo (IPEX) 2011 at the Jakarta Convention Centre on Tuesday.

If signed, the PPA would revise and replace the previous one already signed by the two companies.

Ali said that Bakrie Power wished to construct the power plant in Cirebon soon after the PPA was signed between Bakrie Power and PLN, which priced the electricity at US$4.5 cent per kWH several years ago. ?But, the cost of construction went up, so we need to revise the PPA,? he said.

Once the new PPA is signed, Ali said, the company would ready to develop the power plant, having secured commitment from International Power Plc of Britain and Tomen Power Corporation of Japan.

The two global firms and PT Maharani Paramitra have joint a consortium with Bakri Power called PT Tanjung Jati Power Company. The consortium is ready to invest up to US$2 billion to build the Tanjung Jati A plant, which is scheduled to start operation in 2016. (*)